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Sunshine trading We assume that information on the identity of some uninformed traders is made public or is known by the other market participants, and that their trading strategies are being pre-announced, which means that the size of the orders they will submit at a certain time in the near future is disclosed. The idea behind this practice is that by pre-announcing, uninformed traders should have lower adverse selection costs; essentially, market-makers should reduce the costs for the orders that they recognize as uninformed. Admati and Pfleiderer (1991) call the pre-announcement of uninformed traders’ orders ‘sunshine trading’. They study the effects of pre-announcement, assuming a market similar to the competitive protocol of Grossman and Stiglitz (1980). Here, however, we analyse the efficacy of sunshine trading in the Kyle-type framework in which agents behave strategically; the Grossman–Stiglitz framework is left for the discussion of anonymity in section 10.1.2. The model used here differs from Kyle’s standard model discussed in section 3.3.2 in that it has two types of liquidity trader: those who pre-announce orders and those who do not. By pre-announcing, liquidity traders disclose themselves as uninformed before trading starts; those who do not pre-announce do not reveal their type. The purpose of the model is to determine the effects of pre-announcement on market quality and traders’ welfare. Which traders will take the other side of uninformed traders’ pre-announced orders is also in question.

Shoestring Budget™ inventing does not mean cost-free inventing. If only that were the case! It means that you must contribute, at least some of your own money, to the project. You may be saying, “But, I don’t have any money!” If that is the case, then you might as well stop now. Almost anyone can tap into savings or plan for future expenditures by saving small amounts as they can for something that is really important to them. As we mentioned in an earlier chapter, an inventing project does not require that you have the entire amount at the start. It is very possible to pay for your invention in segments as you move through the steps. In fact, that is the way it must be done since product development, protection and marketing take place over a somewhat extended period of time and the expenditures are made in different areas, such as prototyping, legal, and so on.

When we were first inventing our product, Ghostline ®, we were the epitome of Shoestring Budget™ inventors. We were a couple of wives and mothers who were working full time jobs and we did not have a lot of expendable income. We did have faith in our idea; enough faith to dip into our savings to get our first prototypes made. We did it in bits and pieces.

First, we each contributed about $200, when that money was exhausted we each dipped into our savings again to replenish our “company fund” in order to have the money to continue the prototyping process. Thankfully, our first visits to patent attorneys were free (we interviewed several patent attorneys before selecting one) but when the time came to start the patent application we each dipped into our family savings again. If you truly have faith in the potential of your idea, you will be willing to invest at least some of your own money. If you do not have enough faith in your idea to put your money, even if it is limited, where your mouth is, stop now. Do not waste your time or anyone else’s.